''I.B.M. is the company that is notable for going the other direction,'' he said. ''I.B.M.'s footprint is more narrow today than it was when I started. I am not sure that has been to the long-term benefit of their shareholders.''

I.B.M. sold its networking business in 1999 and steadily exited lower-margin hardware businesses throughout this decade. I.B.M. has argued that it makes more sense to concentrate on higher-profit businesses and leave the grunt work to other guys, namely Hewlett-Packard. Today, I.B.M. directs most of its energy toward software and services and continues to sell higher-margin hardware like Unix servers and mainframes.

I.B.M.'s strategy has worked out well for its investors over the last decade. Shares of I.B.M. are up about 30 percent since 1999, while shares of Microsoft have dropped about 30 percent over the same time span.

ASHLEE VANCE

COMMENT: It should also be pointed out that I.B.M. no longer manufactures typewriters. Sometimes divesting from a business makes more sense when looked at with a decade of hindsight. -- Ben, Sept. 28